AsiaPac, which registered with the Australian Securities and Investment Commission as a company on August 7, is a subsidiary of Conec2 Hong Kong, ASIC’s database shows. Conec2’s sole listed director Cameron Adams is also managing director of Melbourne-based telecommunications provider Conec2 Australia.

Conec2 has not responded to the Financial Review’s request for comment.

Competing bids higher

But The Financial Review understands the sale has sparked a dispute between other bidders, creditors and Ferrier Hodgson over what they consider was a rushed sales process, and questioned the breadth of information shared with buyers during negotiations and the final agreed sales price.

Creditors, which include Telstra, Optus and Kogan, have made claims of more than $73 million in debt owed to them by ispONE as a result of unpaid invoices and termination liabilities.

Related Quotes

Company Profile

It is understood AsiaPac’s bid was one of the lowest offered for the company, among offers of between $1.5 million and $3 million from competing bidders Vocus, iTelecom Wholesale, Telcoinabox and MyNetFone.

The Financial Review has also confirmed that the agreement to sell the company came after a previous attempted sale of ispONE to AsiaPac on August 12, prior to the company entering administration. The contract was never signed by all shareholders in the business.

“We have received numerous complaints from other bidders in relation to the sale process, the information afforded to them (or not afforded), and the ultimate decision of the administrators to select a bidder which they all claimed was not the highest bidder," he said.

“Kogan has not yet formed a final view on whether any remedies are available to us, or will be sought by us, in relation to these matters."

iTelecom Wholesale, another shortlisted bidder in the process, sent letters to other bidders last week asking for a review of the sale process.

“We are not convinced that the recent sale of ispONE to AsiaPac Communications Group, a subsidiary of Conec2 Hong Kong was in the best interests for all creditors of ispONE," the company said in a confidential letter sent to creditors.

“We are concerned about the sale process which may have denied creditors the best outcome."

It noted ispONE administrators provided information required for due diligence in the sale late, or not at all, claiming confidentiality on some matters.

Others involved in the negotiations, who spoke on condition of anonymity, said they were denied access to key information surrounding the risk, liabilities and supplier contracts of ispONE and its subsidiaries, making it difficult to fully value the business in a short time frame.

A Ferrier Hodgson spokesman refused to comment on the confidential bids, but said “all available information was provided to bidders during the sales process".

The creditors’ report said Conec2 did not make the most valuable bid, but claimed it was the only unconditional offer and could be completed immediately.

The report also states that “AsiaPac is a related party to the secured creditor of One Telecom and IBOSS International," both subsidiaries of ispONE.

That secured creditor is believed to be Conec2, AsiaPac’s parent company, which took control of a part of ispONE’s retail customer base in mid-August.

A Telstra spokesman said the company would exercise its rights as a creditor to the business. A meeting of creditors aimed at determining how much of the debts would be fulfilled is scheduled for Monday.